NRI Deposits Jump 43% Between April-December 2024!

The money inflow from Indians abroad into no-resident Indian bank accounts jumped by 42.8 percent between April and December 2024 compared to the same period the previous year.

The amount in NRI deposit is $13.33 billion during the said period of 2024 which was $9.33 billion in the same period of 2023, according to RBI data.

The total outstanding NRI deposits are at $161.8 billion by the end of December 2024, which is up from $146.9 billion in December 2023.

The highest inflows were recorded in FCNR(B) deposits, the foreign currency non-resident deposits which had $6.46 billion during April-December 2024. The amount in 2023 same period was nearly half of it, $3.45 billion. FCNR accounts outstanding amount increased to $32.19 billion by the end of 2024.

FCNR accounts allow NRIs to maintain fixed deposits in freely convertible foreign currencies for up to five years, thus protecting their funds from currency fluctuations.

Other deposits including NRE saw a money inflow of $3.57 billion up from $2.91 billion a year earlier. Outstanding NRE deposits totaled $99.56 billion in December 2024, while NRO deposits have seen $3.29 billion with a total outstanding amount of $30.04 billion in December.

RBI raised the interest rate ceiling on FCNR(B) deposits to enable banks to offer higher returns. This move is to attract more foreign currency inflows and support the rupee against the US dollar.